Centaurus Metals (ASX:CTM) will trade higher today after advancing negotiations regarding an offtake agreement for life-of-mine supply of iron ore concentrate from the company's Jambreiro project.
A contract is expected to be executed shortly with a Brazilian-based iron ore and steel group.
In order to align the supply of iron ore from Jambreiro with requirements of its proposed off-take partner, Centaurus has revised its first planned delivery date from mid-2014 to early 2015.
This revised schedule also allows Centaurus to avoid construction during the upcoming wet season.
With off-take terms expected to be completed in October, Centaurus is working towards on-site construction in March 2014.
The Jambreiro project has also recently received final regulatory approvals from the Brazilian Department of Mines.
Total measured, indicated and inferred resources at Jambreiro currently stand at 116.5 million tonnes grading 26.8% iron, including both near surface friable mineralisation of 67 million tonnes and underlying compact mineralisation of 49.5 million tonnes.
Feasibility studied indicate a 2 million tonne per annum operation delivering a 66% iron final product, an initial 8.5 year mine life, life-of-mine cash costs of $19.9 per tonne of final product, life-of-mine revenue of $1.25 billion and annual operating cash flows of $101 million.
The completion of offtake terms and agreement will provide technical and financial certainty around the project enabling Centaurus to secure the necessary debt funding for planned commencement of construction in March 2014.
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